Any savvy entrepreneur will be have a keen interest in their return on investment, or ROI for short. While an ROI is a simple, useful tool that has a lot of advantages in determining the profitability of an investment, there are also a few limitations to an ROI analysis. Any calculation is only as good as its data, and you will want to include as much data as you can, if you want an accurate representation of your ROI. With the use of simple tools to help you interpret your data, you can have more time to concentrate on growing your business. Here is some bits of information to help you make your workflow more efficient.
Analyzing Data
When it comes to calculating an accurate ROI statistic, managing vast amounts of data can seem like a daunting task. Elasticsearch has become a valuable tool in analytics as it collects unstructured data in the form of JSON documents, so that it can be indexed and retrieved quickly using a search engine. This data is often collected by Logstash, which can collect data from multiple sources simultaneously. The use of elasticsearch allows companies to search petabytes of data very quickly and by using SearchBlox Elasticsearch rather than custom-built elasticsearch, you can also save your company valuable time and money while increasing your return on your investments. SearchBlox also incorporates the powerful dashboard “Kibana,” which brings visualization capabilities to the table and can add valuable insights into your data, assisting you and your employees to increase efficiency and therefore human capital ROI.
Benefits of SearchBlox
Being able to track down and visualize your data helps you to better understand your business. An ROI that doesn’t include all of the necessary variables can be misleading, and perhaps even be a dangerous overestimate. By presenting employees with a visual representation of the data, they can see what is missing or what needs work. This allows for a more realistic conveyance of ROIs, and can then help improve future projections, ensuring that they remain accurate and useful. Once you have a solid ability to access and understand the application of your ROI, the application itself can be used to run calculations several times, with different values, to see how they would affect the result.
Human Capital ROIs
Employees are the backbone of any business, and finding employees that are both a good fit for your company, and actively engaged in their work, will greatly increase your human capital ROI. Matching the best employees to their optimal positions helps to boost employee engagement, and Good Time can help your business do this by quickly finding the right employees. To help illustrate this point, the calculation for Human Capital ROI can be broadly thought of as:
Revenue – Operating Expenses – Employee Compensation/ Employee Compensation.
In other words, by increasing revenue and decreasing operating expenses and employee compensation, your ROI goes up. Increasing employee engagement decreases employee turnover. Moreover, an increase in their productivity tends to also increase the revenue per employee for any business. An employee engagement ROI is a good way to analyze your workplace and improve it, and not just for your business, but for the health and welfare of your employees.
To make money running a business you will have to make more money than you spend, and this can be difficult when unforeseen circumstances come your way. The best method of keeping a stable business up and running is to have a solid grasp of as many aspects of your business as you can, and this includes everything from how your business provides its service, to employee welfare. It is certainly a lot of work, but you stand to gain a lot from it too.